Invitation Homes(US:INVH)2019-07-31 16:08Portfolio Overview - As of June 30, 2019, Invitation Homes owned 80,322 single-family rental homes, a decrease from 82,424 homes in the previous year[239]. - The Same Store portfolio consisted of 72,787 single-family rental homes as of June 30, 2019[241]. - The Western United States and Florida markets accounted for 70.4% of rental revenues during the three months ended June 30, 2019, driven by strong demand fundamentals[219]. Acquisitions and Sales - During the three months ended June 30, 2019, the company acquired 740 homes and sold 779 homes, compared to 263 acquisitions and 348 sales in the same period of 2018[239]. - The number of homes sold increased to 779 in the three months ended June 30, 2019, from 348 in the same period of 2018, resulting in a gain on sale of property, net of tax, of $26.2 million[257]. - The company has commitments to acquire 146 single-family rental homes as of June 30, 2019[342]. Financial Performance - Total rental revenues and other property income for Q2 2019 was $441.6 million, a 2.1% increase from $432.4 million in Q2 2018[244]. - Net income for Q2 2019 was $39.4 million, a significant increase of 377.7% compared to a net loss of $14.2 million in Q2 2018[243]. - Net income for the six months ended June 30, 2019, was $60.6 million, a significant increase of 290.7% compared to a net loss of $31.8 million in 2018[259]. Rental Income and Occupancy - The average occupancy rate across the total portfolio was 94.6% as of June 30, 2019, with the Same Store portfolio achieving a higher occupancy rate of 96.5%[215][216]. - Average monthly rent for the total portfolio was $1,800, while the Same Store portfolio had an average monthly rent of $1,804[215]. - Average monthly rent per occupied home increased by 4.3% to $1,800 in Q2 2019 from $1,725 in Q2 2018[245]. - Average monthly rent per occupied home for the first half of 2019 was $1,791, reflecting a 4.4% increase from $1,715 in the first half of 2018[261]. Expenses and Cost Management - Total expenses decreased to $429.0 million in Q2 2019 from $452.2 million in Q2 2018, a reduction of 5.1%[250]. - Total expenses for the first half of 2019 were $864.0 million, down from $900.7 million in the first half of 2018, a decrease of 4.1%[267]. - General and administrative expenses decreased to $15,956,000 in Q2 2019 from $24,636,000 in Q2 2018, a reduction of 35%[356]. Debt and Financing - Total mortgage loan indebtedness decreased from $7,201.7 million as of December 31, 2018, to $6,509.9 million as of June 30, 2019[282]. - The company made voluntary and mandatory prepayments of $709.4 million for the six months ended June 30, 2019, compared to $3,198.6 million for the same period in 2018[296]. - The Credit Facility provides a total borrowing capacity of $2.5 billion, consisting of a $1 billion Revolving Facility and a $1.5 billion Term Loan Facility[304]. Operational Efficiency - Invitation Homes aims to maintain a vertically integrated operating platform to efficiently manage its portfolio and capture economies of scale[213]. - The company actively manages property improvements and maintenance to optimize capital expenditures and enhance rental revenues[222]. - Invitation Homes has invested in upfront renovations to reduce ongoing maintenance costs and drive resident demand, resulting in high occupancy and low turnover rates[214]. Cash Flow and Liquidity - For the six months ended June 30, 2019, net cash provided by operating activities was $375.3 million, an increase of 20.9% compared to $310.3 million for the same period in 2018[331]. - Net cash used in financing activities was $455.1 million for the six months ended June 30, 2019, compared to $127.6 million for the same period in 2018[334]. - Liquidity and capital resources included unrestricted cash of $77.0 million as of June 30, 2019, a 46.9% decrease from $144.9 million as of December 31, 2018[275]. Performance Metrics - NOI for the total portfolio in Q2 2019 was $275,008,000, an increase of 3% from $267,003,000 in Q2 2018[356]. - FFO for Q2 2019 was $149,091,000, compared to $128,489,000 in Q2 2018, reflecting a 16% increase[365]. - Adjusted EBITDAre for the six months ended June 30, 2019, was $497.40 million, compared to $476.58 million for the same period in 2018[350].